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Brexit unlikely to affect used values until Q4, says Glass's

Date: 12 July 2016   |   Author: Daniel Puddicombe

The UK's choice to leave Europe won't affect used car values until the final quarter of this year, valuations expert Glass's has claimed.

According to the forecaster, the affects of Brexit are expected to make themselves felt by the end of the year, with the summer break - where trade is quieter - also likely to delay the consequences.

"The first factor to hit the car and van markets is likely to be fuel costs. As the pound has dropped in value, oil will become more expensive and pump prices are likely to rise," warned Rupert Pontin, director of valuations at Glass's. "The second will be the choice of prime minister. Based on their decision, we will start to get an idea of when article 50 will be enacted and their overall approach. This may also trigger a period of further instability."

"What is challenging, if not impossible to predict, is how strongly all of these factors will affect the car market. It has been very strong and resilient in recent times, which is a good starting point," Pontin added."However, it is difficult to foresee a situation in which the decision to Brexit does not have a negative effect on both new and used car sales in the short-medium term even if, as leave campaigners promised, it turns out to be good for the economy in the longer term."